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Post by almostcheerful on Jun 8, 2012 15:23:23 GMT
o Canadians Expats/Candidates
First of all thanks to all of you for sharing valuable information and special thanks to Expats who are contributing their time for helping/answering/sharing knowledge through this forum. It's great and I've committed myself that after becoming an expat (hopefully) will do the same.
I got my offer (conditional of course) with one (1) unexpected condition and would like to ask any fellow Canadian or Canadian Expat to shed light on this condition whether if its common or not. I know BI, Medical, Kids School and Visa are common conditions; however the unusual condition is “one must declare Non-resident Status in Canada before join Aramco"? Is this common condition? My concern is I own a house in Alberta, to fulfill non-residency condition I have to sell this house and by the time Medical, BI will be completed there wouldn’t me much time left to sell this house so non-resident condition cannot be served with this restricted time frame. I may considered as deemed resident but not a non-resident, so how to deal with this issue? I read in the forum where someone mentioned that CRA will issue non-resident status letter once fulfill conditions of no ties in Canada; however, keeping home itself is big tie and the market these days in Alberta is no good to sell the house so quickly. Are the following steps are considered under non_resident category? 1- Lease the house for the time being and list for sale at the same time 2- If can’t sell house quickly then Transfer le/mortgage to close family member and declare that I have no ownership /liability anymore
A quick advise will be highly appreciated as based on your experience I have to work through with this condition.
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derekg
Senior Member
Posts: 107
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Post by derekg on Jun 9, 2012 6:29:34 GMT
The choice of status is actually up to you, but should you remain a resident you will be liable for taxes for your income, which you will be for this year as well. The status they are seeking you do make is one with Canada Revenue Agency (CRA) which declares you a non-resident of Canada for tax purposes. This usually cannot be done until you depart the country. The best source of advice for this is to check the CRA site ( www.cra-arc.gc.ca) and go into the nearest CRA office or talk to them on the phone to get a clear answer on this. The issue is complex and CRA has specific rules for this that can help you and allow property ownership and such. The only good advice you will get is by contacting them directly. There is an office in Edmonton that could definitely answer your questions! Derek
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Post by Gentleman_S on Jun 10, 2012 20:39:50 GMT
I really cannot imagine why SA would make this as a condition for employment. Are you sure this is the case? Your tax status is an entirely private matter and has no effect on the company. You should certainly aim at becoming a non resident but ultimately it would be you (not Aramco) who would be penalised if you didn't. I know several expats (not SA employees though) who have left their wife/kids in Canada and therefore are not eligible to non-res status. Of course it's a big hit on their finances..
About keeping a house: I know a fellow who kept his but rented it out and managed to get NR status. Renting with a proper lease is crucial here as the property can then be seen as an investment rather than a residence. Yet I know another guy who kept his condo and whose NR application was rejected by the CRA. The whole thing is very arbitrary!
There are other threads on the forum regarding Canadian non residency but by all means do not keep your Medicare card -- this is a big no-no! You must also return your driver's licence but if possible after having secured one in KSA. Same thing for your credit card, close the account after having gotten one from a bank abroad. Do not keep a cell phone subscription, PO Box, or bank safety box. You must sell your car, do not keep it registered in Canada, another big no-no. If you are a professional engineer you should resign from your provincial professional engineer association.
If you chose to keep a bank account or investment account you MUST make a change of address and use a postal address outside Canada. Do not use the address of a friend or relative in Canada. The bank will also automatically withold a non resident tax from interests or capital gains.
Considering the enormous financial burden of not being non resident do your utmost to severe all the links you can. Good luck!
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Post by almostcheerful on Jun 15, 2012 2:23:49 GMT
Gentleman
You nailed it. Thanks for the best advice.
I will be cancelling all ties as per your advice; however, I may have to keep my home for a while until getting good price to sell. I read the wording in the contract and sure it does says that Aramco expected NR status and any taxes as NR will be fully re-reimbursed by Aramco. I am sure the info you shared with me is not available in CRA websites. Thanks again!
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